Canada gains only 3.2K jobs but unemployment falls to

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Disappointing Canadian jobs report for a change: only 3.2K jobs gained after 19.4K beforehand. The unemployment rate is down from 6.7% to 6.5% but the good news is fueled by a drop in the participation rate from 65.9% to 65.6%, so basically this drop is not such great news.

USD/CAD is mixed and trading around the same levels of 1.3770. In the US, the economy gained 211K jobs but wage growth slowed to 2.5%. This means there is more slack in the US economy. The two reports balance out each other.

Canada was expected to report a gain of 10K jobs in April after 19.4K in March. The unemployment rate was expected to remain unchanged at 6.7%. The previous participation rate was 65.9%.

USD/CAD traded under the resistance line of 1.38. The pair was rejected this high level as oil prices stabilized. However, the bigger picture is a severe downfall. The price of the black gold collapsed. WTI Crude broke below support at $47 and Brent slipped below $50.

At the same time, the US is releasing its own jobs report, the Non-Farm Payrolls, triggering significant volatility in USD/CAD.

Recent jobs reports from Canada have been positive, beating expectations.

More: Oil slips, but CAD stays put – what’s next?

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

2 Comments

  1. Fidelis C. David on

    Pls i’m currently looking to trade USD/CAD (buying the dip) but i’m not sure about the current
    stance of the oil. In the long term most inter-banks think it will rise above 50/bbl(hawkish)
    while in the short-term the consensus view is “super bearish”. This is exactly what i dont understand.

    if the market expects OPEC to extend its cut then why are they still bearish?

    i. Pls how long is this dovish view for the oil expected to last(estimated time)?
    ii. Where do you see the oil heading in the next few weeks (before 25th may)?
    iii. What exactly is the market look at that’s giving it this dovish view both short term and
    long term?
    iv. What should i be watching out for that can give further “dovishness” or hawkishness” to
    the oil?
    v. Do you see prices increasing in the long term
    vi. Do you think trading the oil on the dip is a good idea?

    i know its alot of questions but i’m really confused.
    Thanks for your time.

    • Thanks for your comment. I personally see further downside for the Canadian dollar on falling oil prices, but markets fluctuate quite a lot. Note that the recent jobs report in Canada was disappointing. Stay tuned for our weekly outlook for USD/CAD.
      Thanks